Unumprovident Beats

Unumprovident (UNM) reported 3rd Quarter September 2017 earnings of $1.09 per share on revenue of $2.8 billion. The consensus earnings estimate was $1.04 per share on revenue of $2.8 billion. The Earnings Whisper number was $1.06 per share. Revenue grew 2.0% on a year-over-year basis.

The company said it now expects 2017 earnings to be at, or slightly above, the upper-end of its previous guidance range of $4.12 to $4.23 per share. The current consensus earnings estimate is $4.17 per share for the year ending December 31, 2017.

Unum Group is a general
business corporation. The Company provides insurance & non-insurance
services through its subsidiaries. It also provides a complementary portfolio
of other insurance products.

Unum Group Reports Third Quarter 2017 Results

Unum Group (UNM) today reported net income of $252.3 million
($1.12 per diluted common share) for the third quarter of 2017, compared
to net income of $236.0 million ($1.01 per diluted common share) for the
third quarter of 2016.

After-tax operating income, which excludes net after-tax realized
investment gains and losses on the Companys investment portfolio, was
$246.1 million ($1.09 per diluted common share) in the third quarter of
2017, compared to $228.7 million ($0.98 per diluted common share) in the
third quarter of 2016. Net after-tax realized investment gains were $6.2
million ($0.03 per diluted common share) in the third quarter of 2017,
compared to $7.3 million ($0.03 per diluted common share) in the third
quarter of 2016.

"Third quarter results continued a trend of very good results for the
company. This consistent performance has been driven by solid top-line
growth, overall stable benefits experience, and good expense
management," said Richard P. McKenney, president and chief executive
officer. "We remain focused on effectively serving our customers and
executing our business strategy. Our disciplined approach is yielding
steady growth, strong financial performance, and value creation for our
shareholders."

RESULTS BY SEGMENT

We measure and analyze our segment performance on the basis of
"operating income" or "operating loss," which differ from income before
income tax as presented in our consolidated statements of income due to
the exclusion of net realized investment gains and losses and certain
other items. These performance measures are in accordance with GAAP
guidance for segment reporting, but they should not be viewed as a
substitute for income before income tax or net income.

Unum US Segment

Unum US reported operating income of $258.4 million in the third quarter
of 2017, an increase of 11.9 percent from $231.0 million in the third
quarter of 2016. Premium income for the segment increased 3.5 percent to
$1,360.9 million in the third quarter of 2017, compared to premium
income of $1,315.0 million in the third quarter of 2016. Net investment
income for the segment declined 3.0 percent to $201.0 million in the
third quarter of 2017, compared to $207.3 million in the third quarter
of 2016.

Within the Unum US operating segment, the group disability line of
business reported a 5.4 percent increase in operating income to $90.0
million in the third quarter of 2017, compared to $85.4 million in the
third quarter of 2016. Premium income in group disability increased 2.2
percent to $596.3 million in the third quarter of 2017, compared to
$583.6 million in the third quarter of 2016, primarily due to sales
growth, partially offset by a decline in persistency. Net investment
income declined by 5.3 percent to $113.7 million in the third quarter of
2017, compared to $120.1 million in the third quarter of 2016, due to a
decrease in the level of invested assets and a decline in portfolio
yield, partially offset by higher miscellaneous income. The benefit
ratio for the third quarter of 2017 was 76.7 percent, compared to 78.6
percent in the third quarter of 2016, reflecting continued favorable
incidence trends in our group long-term disability product line and
lower prevalence rates in our group short-term disability product line.
Partially offsetting these positive trends was the 50 basis point
reduction in the discount rate used for new claim incurrals for the
group long-term disability line of business implemented in the fourth
quarter of 2016. Group long-term disability sales were $31.1 million in
the third quarter of 2017, an increase of 28.0 percent from $24.3
million in the third quarter of 2016. Group short-term disability sales
were $20.7 million in the third quarter of 2017, an increase of 76.9
percent from $11.7 million in the third quarter of 2016. Persistency in
the group long-term disability line of business was 89.5 percent for the
first nine months of 2017, compared to 90.5 percent for the first nine
months of 2016. Persistency in the group short-term disability line of
business was 86.3 percent for the first nine months of 2017, compared to
87.4 percent for the first nine months of 2016.

The group life and accidental death and dismemberment line of business
reported operating income of $60.1 million in the third quarter of 2017,
an increase of 12.5 percent from $53.4 million in the third quarter of
2016. Premium income for this line of business increased 4.8 percent to
$407.2 million in the third quarter of 2017, compared to $388.7 million
in the third quarter of 2016, primarily due to sales growth, partially
offset by a decline in persistency. Net investment income declined 2.8
percent to $27.3 million in the third quarter of 2017, compared to $28.1
million in the third quarter of 2016, primarily due to a decline in
yield and a decline in the level of invested assets supporting this line
of business, partially offset by an increase in miscellaneous income.
The benefit ratio in the third quarter of 2017 was 71.4 percent,
compared to 72.6 percent in the third quarter of 2016, reflecting lower
incidence and average claim size in the group life product line. Sales
of group life and accidental death and dismemberment products increased
12.9 percent in the third quarter of 2017 to $35.1 million, compared to
$31.1 million in the third quarter of 2016. Persistency in the group
life line of business was 87.7 percent for the first nine months of
2017, compared to 90.3 percent for the first nine months of 2016.

The supplemental and voluntary line of business reported an increase of
17.5 percent in operating income to $108.3 million in the third quarter
of 2017, compared to $92.2 million in the third quarter of 2016. Premium
income for supplemental and voluntary increased 4.3 percent to $357.4
million in the third quarter of 2017, compared to $342.7 million in the
third quarter of 2016. This increase was primarily driven by the
addition of the dental and vision product offering resulting from an
acquisition in August 2016, as well as growth in the in-force block of
voluntary benefits due to sales growth. The increase was only partially
offset by a decline in the in-force individual disability line due to
the impact of a reinsurance transaction executed in the fourth quarter
of 2016 to cede a portion of the individual disability product line,
which offset an increase in the in-force block due to sales growth. Net
investment income increased 1.5 percent to $60.0 million in the third
quarter of 2017, compared to $59.1 million in the third quarter of 2016,
due to an increase in the level of invested assets and miscellaneous
income, partially offset by a decline in yield. The benefit ratio for
the individual disability product line was 48.3 percent for the third
quarter of 2017, compared to 52.6 percent for the third quarter of 2016,
reflecting lower claim volumes in the current quarter, partially offset
by the impact of the reinsurance agreement. The benefit ratio for
voluntary benefits was 44.1 percent in the third quarter of 2017,
compared to 46.5 percent in the third quarter of 2016, primarily driven
by favorable benefits experience across most of the product lines. The
benefit ratio for dental and vision was 70.1 percent for the third
quarter of 2017, compared to 68.0 percent for the third quarter of 2016,
primarily driven by less favorable claims experience. Relative to the
third quarter of 2016, sales in the individual disability line of
business increased 24.4 percent in the third quarter of 2017 to $20.4
million. Sales in the voluntary benefits line of business decreased 1.8
percent in the third quarter of 2017 to $44.8 million. Sales in the
dental and vision line totaled $9.7 million for the third quarter of
2017. Persistency in the individual disability product line was 91.1
percent for the first nine months of 2017, compared to 91.2 percent for
the first nine months of 2016. Persistency in the voluntary benefits
product line was 76.8 percent for both the first nine months of 2017 and
2016. Persistency in the dental and vision product line was 84.2 percent
in the first nine months of 2017.

Unum UK Segment

Unum UK reported operating income of $26.5 million in the third quarter
of 2017, a decline of 6.0 percent from $28.2 million in the third
quarter of 2016. In local currency, operating income declined by 6.0
percent to ?20.2 million in the third quarter of 2017, compared to ?21.5
million in the third quarter of 2016.

Premium income increased by 3.3 percent to $131.5 million in the third
quarter of 2017, compared to $127.3 million in the third quarter of
2016. In local currency, premium income was ?100.4 million in the third
quarter of 2017, an increase of 3.6 percent from ?96.9 million in the
third quarter of 2016, primarily driven by growth in the in-force block,
resulting from prior period sales and stable persistency. Net investment
income was $28.5 million in both the third quarter of 2017 and 2016. In
local currency, net investment income was ?21.8 million in the third
quarter of 2017, compared to ?21.7 million in the third quarter of 2016,
primarily due to higher income from inflation index-linked bonds which
support the claim reserves associated with certain group policies that
provide inflation-linked increases in benefits and growth in the level
of invested assets, partially offset by a decline in yield on fixed-rate
bonds. The benefit ratio in the third quarter of 2017 was 74.9 percent,
compared to 71.8 percent in the third quarter of 2016, reflecting higher
claim incidence and unfavorable claim resolutions in the group long-term
disability product line and the impact from inflation-linked increases
in benefits, partially offset by a lower average claim size in the group
life product line. Also contributing to the less favorable benefits
experience was a reduction of 80 basis points in the discount rate
implemented in the first quarter of 2017 across several of our products.

Sales declined by 14.9 percent to $16.5 million in the third quarter of
2017, compared to $19.4 million in the third quarter of 2016. In local
currency, sales for the third quarter of 2017 declined by 14.2 percent
to ?12.7 million compared to ?14.8 million in the third quarter of 2016.
Persistency in the group long-term disability line of business was 87.1
percent for the first nine months of 2017, compared to 88.7 percent for
the first nine months of 2016. Persistency in the group life line of
business was 83.5 percent for the first nine months of 2017, compared to
80.1 percent for the first nine months of 2016. Persistency in the
supplemental line of business was 89.5 percent for the first nine months
of 2017 compared to 90.5 percent for the first nine months of 2016.

Colonial Life Segment

Colonial Life reported a 3.4 percent increase in operating income to
$81.7 million in the third quarter of 2017, compared to $79.0 million in
the third quarter of 2016.

Premium income for the third quarter of 2017 increased 6.9 percent to
$378.7 million, compared to $354.1 million in the third quarter of 2016,
driven by sales growth in recent quarters and stable persistency. Net
investment income totaled $36.0 million in the third quarter of 2017,
compared to $36.1 million in the third quarter of 2016, primarily driven
by a decline in portfolio yield and lower miscellaneous income, which
was partially offset by an increase in the level of invested assets. The
benefit ratio in the third quarter of 2017 was 51.8 percent, compared to
51.6 percent in the third quarter of 2016, reflecting less favorable
benefits experience in the cancer and critical illness lines of
business, mostly offset by favorable experience in the life and
accident, sickness, and disability lines of business.

Sales increased 2.6 percent to $106.9 million in the third quarter of
2017 from $104.2 million in the third quarter of 2016, driven by
increased sales in the core commercial market segment and public sector.
Persistency in Colonial Life was 79.0 percent for both the first nine
months of 2017 and 2016.

Closed Block Segment

The Closed Block segment reported operating income of $26.6 million in
the third quarter of 2017, compared to $28.6 million in the third
quarter of 2016.

Premium income for this segment declined 3.6 percent in the third
quarter of 2017 compared to the third quarter of 2016, primarily due to
expected policy terminations and maturities for the individual
disability line of business which was partially offset by an increase in
premium income for the long-term care line of business resulting from
premium rate increases on certain in-force policies. Net investment
income increased 0.9 percent to $337.2 million in the third quarter of
2017, compared to $334.1 million in the third quarter of 2016, due to an
increase in the level of invested assets which was partially offset by a
decline in yield. The interest adjusted loss ratio for the individual
disability line of business increased to 82.4 percent in the third
quarter of 2017, compared to 81.5 percent in the third quarter of 2016,
due to unfavorable mortality experience. The interest adjusted loss
ratio for the long-term care line of business was 93.3 percent in the
third quarter of 2017 compared to 93.8 percent in the third quarter of
2016, due to the impact of a large group case moving to an individual
policy ported status in 2016, partially offset by unfavorable
policyholder lapses in the current quarter.

Corporate Segment

The Corporate segment reported an operating loss of $36.2 million for
the third quarter of 2017, compared to an operating loss of $45.7
million in the third quarter of 2016, primarily driven by lower
operating expenses and lower interest expense due to a lower level of
outstanding debt, partially offset by a higher overall rate of interest.

The Company previously excluded the amortization of prior period
actuarial gains or losses, a component of the net periodic benefit cost
for the Companys pension and other postretirement benefit plans, from
the results of the Corporate segment. Effective January 1, 2017, the
amortization of prior period actuarial gains or losses is now reported
in the Corporate segment and amounts for prior periods have been
adjusted to conform to current year reporting.

OTHER INFORMATION

Shares Outstanding

The Companys weighted average number of shares outstanding, assuming
dilution, was 226.0 million for the third quarter of 2017, compared to
234.2 million for the third quarter of 2016. Shares outstanding totaled
224.4 million at September 30, 2017. During the third quarter of 2017,
the Company repurchased approximately 2.0 million shares at a cost of
approximately $100 million.

Capital Management

At September 30, 2017, the weighted average risk-based capital ratio for
the Companys traditional U.S. insurance companies was approximately 410
percent and cash and marketable securities in the holding companies
equaled $771 million, excluding amounts committed for subsidiary
contributions.

Book Value

Book value per common share as of September 30, 2017 was $42.11,
compared to $40.33 at September 30, 2016.

Outlook

The Companys expectation for after-tax operating income growth per
share for full-year 2017 is at, to slightly above, the upper end of its
range of five percent to eight percent established in the second quarter
of 2017.

NON-GAAP FINANCIAL MEASURES

We analyze our performance using non-GAAP financial measures. A non-GAAP
financial measure is a numerical measure of a companys performance,
financial position, or cash flows that excludes or includes amounts that
are not normally excluded or included in the most directly comparable
measure calculated and presented in accordance with GAAP. The non-GAAP
financial measure of "after-tax operating income" differs from net
income as presented in our consolidated operating results and income
statements prepared in accordance with GAAP due to the exclusion of net
realized investment gains and losses as specified in the reconciliations
in the Financial Highlights section below. We believe operating income
is a better performance measure and better indicator of the
profitability and underlying trends in our business.

Realized investment gains or losses depend on market conditions and do
not necessarily relate to decisions regarding the underlying business of
our segments. Our investment focus is on investment income to support
our insurance liabilities as opposed to the generation of realized
investment gains or losses. Although we may experience realized
investment gains or losses which will affect future earnings levels, a
long-term focus is necessary to maintain profitability over the life of
the business since our underlying business is long-term in nature, and
we need to earn the interest rates assumed in calculating our
liabilities.

We previously excluded the amortization of prior period actuarial gains
or losses, a component of the net periodic benefit cost for our pension
and other postretirement benefit plans. Effective January 1, 2017, the
amortization of prior period actuarial gains or losses is now included
in "after-tax operating income" in the Financial Highlights section
below. Amounts for periods prior to January 1, 2017 have been adjusted
to conform to current year reporting.

We may at other times exclude certain other items from our discussion of
financial ratios and metrics in order to enhance the understanding and
comparability of our operational performance and the underlying
fundamentals, but this exclusion is not an indication that similar items
may not recur and does not replace net income or net loss as a measure
of our overall profitability.

Information reconciling the Companys outlook on after-tax operating
income growth per share to the comparable GAAP financial measure is not
provided. The only amounts excluded from after-tax operating income are
those described in the preceding paragraphs. The Company is unable to
predict with reasonable certainty realized investment gains and losses,
which are affected by overall market conditions and also by factors such
as an economic or political change in the country of the issuer, a
regulatory change pertaining to the issuers industry, a significant
improvement or deterioration in the cash flows of the issuer, unforeseen
accounting irregularities or fraud committed by an issuer, movement in
credit spreads, ratings upgrades or downgrades, a change in the issuers
marketplace or business prospects, or any other event that significantly
affects the issuers of the fixed maturity securities which the Company
holds in its investment portfolio.

CONFERENCE CALL INFORMATION

Members of Unum Group senior management will host a conference call on
Thursday, October 26, at 8:00 a.m. (Eastern Time) to discuss the results
of operations for the third quarter. Topics may include forward-looking
information, such as the Companys outlook on future results, trends in
operations, and other material information.

The dial-in number for the conference call is (800) 231-9012,
for U.S. and Canada (pass code 9545873). For international, the dial-in
number is (719) 325-4856 (pass code 9545873). A live webcast of the
call will also be available at www.investors.unum.com
in a listen-only mode. It is recommended that webcast viewers access the
"Investors" section of the Companys website and opt-in to the webcast
approximately 5-10 minutes prior to the start of the call. The Company
will maintain a replay of the call on its website through Thursday,
November 2. A replay of the call will also be available by dialing (866)
375-1919 (U.S. and Canada) or (719) 457-0820 (International) - pass code
9545873.

In conjunction with todays earnings announcement, the Companys
Statistical Supplement for the third quarter of 2017 is available on the
"Investors" section of the Companys website.

ABOUT UNUM GROUP

Unum (www.unum.com)
is one of the leading providers of employee benefits products and
services and the largest provider of disability insurance products in
the United States and the United Kingdom.

SAFE HARBOR STATEMENT

Certain information in this press release constitutes "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are those not based on
historical information, but rather relate to our outlook, future
operations, strategies, financial results, or other developments and
speak only as of the date made. These forward-looking statements,
including statements about anticipated growth in after-tax operating
income per share, are subject to numerous assumptions, risks, and
uncertainties, many of which are beyond our control. The following
factors, in addition to other factors mentioned from time to time, may
cause actual results to differ materially from those contemplated by the
forward-looking statements: (1) sustained periods of low interest rates;
(2) fluctuation in insurance reserve liabilities and claim payments due
to changes in claim incidence, recovery rates, mortality and morbidity
rates, and policy benefit offsets due to, among other factors, the rate
of unemployment and consumer confidence, the emergence of new diseases,
epidemics, or pandemics, new trends and developments in medical
treatments, the effectiveness of our claims operational processes, and
changes in government programs; (3) unfavorable economic or business
conditions, both domestic and foreign; (4) legislative, regulatory, or
tax changes, both domestic and foreign, including the effect of
potential legislation and increased regulation in the current political
environment; (5) investment results, including, but not limited to,
changes in interest rates, defaults, changes in credit spreads,
impairments, and the lack of appropriate investments in the market which
can be acquired to match our liabilities; (6) a cyber attack or other
security breach could result in the unauthorized acquisition of
confidential data; (7) the failure of our business recovery and incident
management processes to resume our business operations in the event of a
natural catastrophe, cyber attack, or other event; (8) increased
competition from other insurers and financial services companies due to
industry consolidation, new entrants to our markets, or other factors;
(9) execution risk related to our technology needs; (10) changes in our
financial strength and credit ratings; (11) damage to our reputation due
to, among other factors, regulatory investigations, legal proceedings,
external events, and/or inadequate or failed internal controls and
procedures; (12) actual experience that deviates from our assumptions
used in pricing, underwriting, and reserving; (13) actual persistency
and/or sales growth that is higher or lower than projected; (14) changes
in demand for our products due to, among other factors, changes in
societal attitudes, the rate of unemployment, consumer confidence,
and/or legislative and regulatory changes, including healthcare reform;
(15) effectiveness of our risk management program; (16) contingencies
and the level and results of litigation; (17) availability of
reinsurance in the market and the ability of our reinsurers to meet
their obligations to us; (18) ineffectiveness of our derivatives hedging
programs due to changes in the economic environment, counterparty risk,
ratings downgrades, capital market volatility, changes in interest
rates, and/or regulation; (19) changes in accounting standards,
practices, or policies; (20) fluctuation in foreign currency exchange
rates; (21) ability to generate sufficient internal liquidity and/or
obtain external financing; (22) recoverability and/or realization of the
carrying value of our intangible assets, long-lived assets, and deferred
tax assets; and (23) terrorism, both within the U.S. and abroad, ongoing
military actions, and heightened security measures in response to these
types of threats.

For further discussion of risks and uncertainties which could cause
actual results to differ from those contained in the forward-looking
statements, see Part 1, Item 1A "Risk Factors" of our annual report on
Form 10-K for the year ended December 31, 2016, and, to the extent
applicable, our subsequent quarterly reports on Form 10-Q. The
forward-looking statements in this press release are being made as of
the date of this press release, and the Company expressly disclaims any
obligation to update or revise any forward-looking statement contained
herein, even if made available on our website or otherwise.